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Loans Receivable
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans Receivable Loans Receivable
The following table summarizes the Company’s loans receivable (in thousands):
June 30,
2026		December 31,
2025
Secured loans(1)
$227,699 $583,460 
Mezzanine loans43,079 47,690 
Unamortized discounts and fees(1,215)(13,785)
Reserve for loan losses(8,165)(11,345)
Loans receivable, net$261,398 $606,020 
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(1)At June 30, 2026 and December 31, 2025, the Company had $70 million and $99 million, respectively, of remaining commitments to fund additional principal on loans for outpatient medical and lab capital expenditure projects.
Sunrise Senior Housing Portfolio Seller Financing
In conjunction with the sale of a portfolio of Senior Housing Operating Property (“SHOP”) facilities in January 2021, the Company provided the buyer with financing secured by the buyer’s equity ownership in each property, which was refinanced in February 2024. In August 2025, the Company received full repayment of the $58 million outstanding balance of this seller financing.
Other SHOP Seller Financing
In conjunction with another SHOP portfolio sale in January 2021, the Company provided the buyer with financing secured by the buyer’s equity ownership in each property. This secured loan matured in January 2025, at which time the Company received full repayment of the $48 million outstanding balance of this seller financing.
Outpatient Medical Seller Financing
In conjunction with the sale of 59 outpatient medical buildings for $674 million in July 2024 and two outpatient medical buildings for $23 million in November 2024, the Company provided the buyer with a mortgage loan secured by the real estate sold for $405 million and $14 million, respectively. The remainder of the sales price was received in cash at the time of sales. The seller financing has an initial term that matures in July 2026 and includes two 12-month extension options. The interest rate on the seller financing is fixed at 6.0% for the initial term and increases to 6.5% during the optional extension periods. The Company also received a $1 million loan origination fee in connection with the loan, which is being recognized in interest income over the remaining term of the loan. In connection with this seller financing, the Company reduced the gain on sales of real estate and recognized a mark-to-market discount of $21 million during the year ended December 31, 2024. This discount is based on the difference between the stated interest rate and the corresponding prevailing market rate as of the transaction date. The discount is recognized as interest income over the term of the discounted loan using the effective interest rate method.
In June 2026, the Company received a $399 million partial principal repayment. In connection with this repayment, the Company accelerated recognition of $9 million of non-cash interest income related to the mark-to-market discount and loan fees. Subsequent to the repayment, as of June 30, 2026, the outstanding principal balance was $20 million and was collateralized by eight outpatient medical buildings.
Inclusive of the accelerated recognition, during the three and six months ended June 30, 2026, the Company recognized $10 million and $12 million, respectively, of non-cash interest income related to the amortization of this mark-to-market discount. During the three and six months ended June 30, 2025, the Company recognized $2 million and $3 million, respectively, of non-cash interest income related to the amortization of this mark-to-market discount. As of June 30, 2026 and December 31, 2025, the unamortized mark-to-market discount was $400 thousand and $12 million, respectively.
Loans Receivable Activity
The following is a summary of the Company’s loans receivable activity for the periods presented (in thousands):
Secured Loans
Mezzanine Loans
Loans receivable as of December 31, 2024$638,482 $50,314 
Add: Advances on and acquisitions of loans receivable87,648 4,756 
Less: Receipts on loans receivable and other reductions
(142,670)(7,380)
Loans receivable as of December 31, 2025583,460 47,690 
Add: Advances on and acquisitions of loans receivable43,238 229 
Less: Receipts on loans receivable and other reductions
(398,999)(4,840)
Loans receivable as of June 30, 2026$227,699 $43,079 
Loans Receivable Internal Ratings
In connection with the Company’s quarterly review process or upon the occurrence of a significant event, loans receivable are reviewed and assigned an internal rating of Performing, Watch List, or Workout. Loans receivable that are deemed Performing meet all present contractual obligations, and collection and timing, of all amounts owed is reasonably assured. Watch List loans receivable are defined as loans receivable that do not meet the definition of Performing or Workout. Workout loans receivable are defined as loans receivable in which the Company has determined, based on current information and events, that: (i) it is probable it will be unable to collect all amounts due according to the contractual terms of the agreement, (ii) the borrower is delinquent on making payments under the contractual terms of the agreement, and (iii) the Company has commenced action or anticipates pursuing action in the near term to seek recovery of its investment.
The following table summarizes, by year of origination, the Company’s internal ratings for loans receivable, net of unamortized discounts, fees, and reserves for loan losses, as of June 30, 2026 (in thousands):
Investment Type
Year of Origination(1)
Total
2026
2025
202420232022Prior
Secured loans
Risk rating:
Performing loans$10,293 $60,987 $76,059 $41,889 $33,395 $— $222,623 
Watch list loans— — — — — — — 
Workout loans— — — — — — — 
Total secured loans$10,293 $60,987 $76,059 $41,889 $33,395 $— $222,623 
Current period gross write-offs$— $— $— $— $— $— $— 
Current period recoveries— — — — — — — 
Current period net write-offs$— $— $— $— $— $— $— 
Mezzanine loans
Risk rating:
Performing loans$— $4,292 $13,919 $— $3,862 $16,702 $38,775 
Watch list loans— — — — — — — 
Workout loans— — — — — — — 
Total mezzanine loans$— $4,292 $13,919 $— $3,862 $16,702 $38,775 
Current period gross write-offs$— $— $— $— $— $— $— 
Current period recoveries— — — — — — — 
Current period net write-offs$— $— $— $— $— $— $— 
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(1)Additional fundings under existing loans are included in the year of origination of the initial loan.
Reserve for Loan Losses
The Company evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis to determine whether any updates to the future expected losses recognized upon inception are necessary. The Company’s evaluation considers payment history and current credit status, industry conditions, current economic conditions, forecasted economic conditions, individual and portfolio property performance, credit enhancements, liquidity, and other factors. Future economic conditions are based primarily on near-term economic forecasts from the Federal Reserve and reasonable assumptions for long-term economic trends. The determination of loan losses also considers concentration of credit risk associated with the senior housing, outpatient medical, and lab industries to which its loans receivable relate. The Company’s borrowers furnish property, portfolio, and guarantor/operator-level financial statements, among other information, on a monthly or quarterly basis; the Company utilizes this financial information to calculate the debt service coverages in its assessment of internal ratings that it uses as a primary credit quality indicator. Debt service coverage information is evaluated together with other property, portfolio, and operator performance information, including revenue, expense, net operating income, occupancy, rental rate, reimbursement trends, capital expenditures, and EBITDA (defined as earnings before interest, tax, and depreciation and amortization), underlying collateral value (as applicable), along with other liquidity measures. The Company evaluates, on a quarterly basis or immediately upon a significant change in circumstance, its borrowers’ ability to service their obligations with the Company.
The following table summarizes the Company’s reserve for loan losses (in thousands):
June 30, 2026December 31, 2025
Secured LoansMezzanine LoansTotalSecured LoansMezzanine LoansTotal
Reserve for loan losses, beginning of period$4,750 $6,595 $11,345 $5,574 $4,925 $10,499 
Provision for expected loan losses on funded loans receivable(417)(2,599)(3,016)908 2,215 3,123 
Expected loan losses (recoveries) related to loans sold or repaid in full— (164)(164)(1,732)(545)(2,277)
Reserve for loan losses, end of period$4,333 $3,832 $8,165 $4,750 $6,595 $11,345 
Additionally, at June 30, 2026 and December 31, 2025, a liability of $0.5 million and $1.1 million, respectively, related to expected credit losses for unfunded loan commitments was included in accounts payable, accrued liabilities, and other liabilities.
The change in the reserve for expected loan losses during the six months ended June 30, 2026 is primarily due to (i) changes in operating performance and fair values of the underlying collateral of the Company’s loans receivable and (ii) recoveries related to loan repayments during the six months ended June 30, 2026, partially offset by reserves recognized on a new and extended secured loan executed during the six months ended June 30, 2026.